You have families out there paying 6, 8, 10 percent on student debt but you can refinance your homes at 3 percent. What sense is that?
— Bernie Sanders (@SenSanders) December 26, 2015
For those who are not familiar with how interest rates work, home mortgages are secured loans meaning that they can take your house if you don't pay. You can't even get a mortgage without showing the bank that you are able to pay (that rule was relaxed during the first part of the 21st century which led to the Great Recession). College loans are unsecured and are given to students in the hope that they will complete their degree and use it to get a job that allows you to repay the loan. People default on college loans far more often than they do on mortgages. That is why mortgage rates are much lower. The higher rate for college loans pays for the people who default.
You would think that a member of the senate and a leading candidate for President would understand how these things work. In fact there is a good chance that Bernie is aware of all of this and rejects it. That's what being a socialist means: You ignore economics and order things the way you think they should work.
If Bernie had his way then the government would lose money on student loans (Obama already decided that it was immoral for banks to profit from student loans and nationalized them). If Bernie wants to subsidize student loans then he should say so instead of making false comparisons.
It doesn't really matter if Bernie doesn't understand basic economics or if he rejects it. Either would be disastrous in the President of the United States.
Thursday, December 31, 2015
Why Bernie Shouldn't be President in One Tweet
Wednesday, December 09, 2015
Mush From the Wimp
In 1980, an editor put a placeholder title on an article about a speech by President Carter. He was not a fan of the President and entitled it, "Mush From the Wimp" He intended to fix it before it went to print but a few copies got out.
I was reminded of that when President Obama made his Oval Office speech last Sunday. Prior to the speech I was afraid that he was about to announce some new presidential directive to limit guns. Instead he gave a short speech in which he proposed nothing new and only seemed animated when warning about the perils of Islamophobia. In the fight against ISIS (or ISIL) he offered the straw man alternative of a 100,000 man invasion which no one has seriously proposed.*or lists, he seems to be referring to the terrorist watch list and the no-fly list which are separate but similar
Saturday, December 05, 2015
Posturing About Guns
The left is using the Rahm Emanuel school of crisis control - never let a crisis go to waste. This has led to an embarrassing about of political posturing.
First came the slaughter in Paris. President Obama insisted that the response to this was an international agreement on global warming. While this was rather lame, the rest of the left used the tragedy to bludgeon the right over concerns that the proposed 10,000 Syrian refugees will not be properly screened.Regardless, the left is using tragedies to push an agenda that will do nothing to stop further shootings. This is insulting to Americans.
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